Powell’s hawkish tone on inflation and potential for further rate hikes propels USD/CAD to a three-month high of 1.3640, currently trading at 1.3613.
Philadelphia Fed’s Patrick Harker adds fuel to the fire, stating rates are already restrictive and may need to rise further if inflation stalls.
Lackluster Canadian retail sales data at 0.1% MoM adds to the bullish momentum for USD/CAD as traders eye upcoming US and Canadian economic indicators.
The USD/CAD pair edged higher for the second straight day and refreshed three-month highs at 1.3640, following the Federal Reserve Chair Powell’s hawkish speech, which triggered volatility across the board. Later, Patrick Harker from the Philadelphia Fed emphasized rates are at a restrictive stance. The USD/CAD is trading at 1.3613, printing gains of 0.36%.
Opening remarks from the US Fed Chair Jerome Powell showed the central bank is still worried about high inflation, as he mentioned that further rate hikes could be appropriate, though policymakers would remain data dependent. Powell stated that although two months of good data on inflation are reasonable, there’s a long way to go, as he emphasized the Fed’s 2% inflation target.
Tags hikes Jerome Powell USD/CAD
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